Technical Analysis Fortis Healthcare Ltd.

The stock $FORTIS has after a strong rally that peaked near the 1100 mark late last year the stock went into a deep correction falling all the way to the 780-800 zone. However since early April it has started a solid short-term recovery. It is currently forming a bullish pattern of higher highs and higher lows. Immediate Resistance the 990 to 1000 zone. The stock is currently testing this area. The 1000 mark is a major psychological barrier. Major Resistance if it successfully breaks and holds above 1000 the next major hurdle is the previous swing high around 1080 to 1100. Immediate Support if the price faces rejection here and falls it should find initial support in the 880 to 920 zone. Major Support the bottom formed around the 780-800 level is a very strong base. The recent recovery looks like a U-shape bounce. However the volume on this upward move is relatively average. To confidently break past the 1000 resistance the stock needs to show larger green volume bars to confirm that strong buyers have stepped in. For short-term buyers entering a fresh position right now at 970 is risky because the stock is too close to the major 1000 resistance ceiling it is much safer to wait for a confident breakout above 1000 or buy on a dip near the 900-920 support zone. For current holders, the recent recovery trend is positive so you can comfortably hold your existing positions. Just make sure to keep a strict trailing stop-loss around the 920 mark to protect your capital, and watch closely to book partial profits if the stock struggles and reverses from that 1000 level. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.